Community Loans

Eligible projects

A community loan can be used for the establishment or development of recreational facilities in the Whangārei District by community organisations.

Examples of eligible projects:

• installing artificial turf
• adding field lights
• developing a new sports hub
• upgrading community tennis courts
• developing walking and cycling trails.

Ineligible projects

The scheme is generally not available for:

• retrospective costs
• debt servicing
• repairs and maintenance
• facility operating costs
• projects normally expected to be funded by Central Government or its agencies.

The following criteria determine eligibility to apply for a loan and the level of support Council may be willing to offer:

• You must be a not-for-profit incorporated society or charitable trust with a constitutionally open membership.
• You must be in a stable and sound financial position.
• The project must meet our funding priority of Recreation and Sport.
• You can contribute 50 per cent towards the project (this can be from grant funding such as Lotteries, and may also be a Council grant from the Whangārei Communities Fund).
• You can demonstrate the ability to repay the loan within eight years.
• You can demonstrate the ability to maintain and run the facility well into the future.
• You have a good track record for project management.
• The recreational facility is to be within the Whangārei District.
• There is demonstrable need and benefit for the wider community or a sector of the community.
• The community and affiliated bodies support the proposal.

Our community loan terms are as follows:

• If the application is successful, a letter of offer will be sent outlining our proposed loan terms. This must be accepted in writing for the loan documents to be drawn up.
• Loans will be formally executed with security applied against the property as Council deems appropriate. 
• Legal expenses will be the responsibility of the applicant, but may be included in the loan.
• It can take up to eight weeks for loan documents to be finalised, signed by all parties, and the funds paid.
• For GST registered organisations, the GST portion of costs will not be funded by the loan.
• Council may impose other conditions on the loan, such as loan draw-downs by instalment and subject to invoices from suppliers.
• Financial statements must be provided to Council annually during the term of the loan.
• In the case of any default on repayments, Council will work with the organisation to remedy the situation as quickly as possible. 
• Council will exercise its rights as specified in the loan agreement where loan repayments are not possible or forthcoming.

You can apply for up to $100,000 as a community loan for recreational facilities. 

We will lend no more than 50 per cent of the total project cost, and you need to show that you can contribute the other half.

You must demonstrate the ability to repay the loan.

You will need to provide the following with your application for a community loan:

• evidence of community support for the project
• project timeline including expected milestones
• location plan and legal description of the land
• approval from landowner if property is leased
• design plans, photos and / or drawings
• cash-flow forecast for the term of the loan, demonstrating your ability to repay
• project budget and evidence of costs (quotes)
• latest financial performance report 
• proof of bank account details.